Transcript

00:00:01

>> So many shops so little time, but now there's even more pressure on Brexit Britain's consumers. Prices are going up and by faster than was forecast. Headline inflation at 2.3% in February is also above official targets in the biggest jump in over three years. Reuters Market Editor Mike Dolan.

00:00:19

>> And it also raises a conundrum for the bank, which has interest rates as low as a quarter percent, as to what direction it takes it, monetary policy next.>> Even core inflation is now at 2% as transport costs rise. Food prices were up in February for the first time in over two years.

00:00:38

Consumer confidence now looks vulnerable, just as Britain faces up to its biggest unknown, Brexit. Theresa May preparing to press the button next week on divorce proceedings with the EU.>> The bank itself forecasts inflation to rise somewhere in the region of 2.8% by the middle of next year.

00:00:57

But you can see a 2.3% today at this early point of 2017. The risk at least in many people's minds will be that it'll over shoot that.>> Many economists already see a 3% rate over the next year. And with earnings growth now slowing, consumers may be left wondering which way to turn.